Keyword
in
Collection
Date
to
Marriott Corporation, 1981 Annual Report
Image 32
Citation
MLA
APA
Chicago/Turabian
Marriott International, Inc.. Marriott Corporation, 1981 Annual Report - Image 32. 1981. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. October 29, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1432.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc.. (1981). Marriott Corporation, 1981 Annual Report - Image 32. Annual Reports from the Hospitality Industry Archives. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. Retrieved from https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1432

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc., Marriott Corporation, 1981 Annual Report - Image 32, 1981, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed October 29, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1432.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

URL
Embed Image
Compound Item Description
Title Marriott Corporation, 1981 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1981
Description Marriott Corporation Annual Report for calendar year 1981.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Marriott International, Inc.
Genre (AAT)
  • annual reports
  • business records
Language English
Type (DCMI)
  • Text
  • Image
Original Item Location Marriott Hotels Collection
Digital Collection Annual Reports from the Hospitality Industry Archives
Digital Collection URL http://digital.lib.uh.edu/collection/hiltonar
Repository Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston
Repository URL http://www.uh.edu/hilton-college/About/hospitality-industry-archives
Use and Reproduction No Copyright - United States
File Name index.cpd
Item Description
Title Image 32
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_053_032.jpg
Transcript 30 In one unique package, Marriott Corporation obtained, on behalf of a new limited partnership, a $456 million commitment from a syndicate of commercial banks to provide 100% financing for 11 hotels. The financing requires only 16% amortization over a 12-year term. Interest rates float with the bank cost of funds. However, interest owed above certain levels, but not actually supported by project cash flows, accrues and is amortized only from available cash flow. The financing, including accruals, is nonrecourse subject to a Marriott guarantee of $46 million. The guarantee is eliminated when certain operating cash flow levels are attained. Marriott has registered a public hotel equity offering along with the debt syndication. This offering represents a major move into the public financing of the company's hotel real estate, and has particular value to Marriott at the present time: □ It opens a significantly larger and more stable source of funds for hotel capital than today's insurance company market. □ The interest rates float, permitting the company to avoid being locked into the extraordinarily high real returns demanded in today's long-term debt market. The financing is prepayable without penalty, permitting refinancing in more attractive future markets. □ Marriott is able to retain greater management fee income than that presently available with life insurance company financing. □ The commercial bank debt package permits equity structures that enable Marriott to obtain substantial tax benefits. During the late 1970s, Marriott placed nearly $2 billion of hotel financing with large insurance companies. Nearly $1 billion of commercial bank financing should be in place by year-end 1982. In the 1980s, large public financings of Marriott hotel capital are anticipated in the form of limited partnership shares, convertible debt, participating mortgages and other creative instruments. Recently, the company has begun to explore foreign capital sources for domestic hotel development. Foreign capital traditionally has avoided U.S. domestic hotel investment—preferring presumed less risky investment in office buildings and shopping centers. Marriott's operational track record and the wide domestic institutional holding of its real estate make the company's hotels more attractive to foreign investors at this time. Condominium sales are a relatively minor yet potentially significant source of future financing for resort projects. Presently most of the company's 18 resorts are owned by investors, including Camelback Inn, which was sold in the early 1970s as one of the first SEC-registered condominium syndications. Condominium programs are under consideration for several other resorts now in the initial stages of development. Marriott itself continues as a major provider of funds for its domestic hotel development effort. Over a third of the approximately $4 billion of funds required for domestic hotel development over the next five years may be company-funded through a combination of internally generated funds and prudent corporate borrowing. By positioning itself as an unsecured borrower, Marriott has guaranteed itself access to the broad sources of corporate capital necessary to support development during the periods of cyclical contraction endemic to traditional project financing markets. These company-owned hotel projects may be held during poor hotel capital markets and placed with investors during strong markets. The capacity to own hotels has enabled the company to pursue its hotel development plans during cyclical downturns in the traditional hotel capital markets. New funding sources should further insulate Marriott from the cyclical factors affecting real estate development programs. A strong operating track record with high financial returns is fundamental to Marriott's success in securing new funding sources for hotel development, and to its willingness to commit large amounts of its own capital toward this effort. Outlook Thus, access to capital and a large vertically integrated development capability will enable Marriott to successfully maintain its growth plan through the 1980s. Marriott hotels remain a premier investment product in the hotel industry, with continuing access to large capital pools on favorable terms. It is anticipated that as long as the company maintains its operating strength, it will secure the capital necessary to fund its growth.